Free · Los Angeles · 60 seconds
Fund your ADU with your equity.
Plug in your home value, mortgage balance, credit, and HELOC term — we'll estimate your APR, monthly payment, and combined LTV the same way an LA ADU lender does.
Live estimate
Build your HELOC estimate
Default reflects typical 2026 HELOC ranges by credit tier, property type, and term. Your actual rate depends on full lender underwriting.
Estimated monthly payment
$0
- Estimated APR
- 0.00%
- Combined LTV (CLTV)
- 0%
- Total interest over term
- $0
Free · No obligation · LA-based ADU lenders
- Typical HELOC rate
-
7.5–11%
2026 APR range
- Max CLTV
-
85%
Typical max CLTV
- Cost to use
-
$0
To use this
Updated for 2026 · Standard amortization · Educational estimate, not a loan offer
How a HELOC funds an ADU
Why most LA homeowners we work with use a HELOC.
Speed
Close in 5–10 days.
Digital HELOC lenders (Figure, Spring EQ, Aven) close in days, not months. Construction loans typically take 6–10 weeks. If you want shovels in the ground this quarter, a HELOC is the realistic path.
Flexibility
Draw as you build.
Pull funds at each construction milestone — foundation, framing, mechanical, finishes — and only pay interest on what's drawn. No lender inspections at every stage like a construction loan.
Low cost
Cheaper than alts.
A HELOC at 8% beats a construction loan at 10–12% and personal loans at 14–22%. Interest may be tax-deductible if the proceeds fund the ADU build — ask your CPA.
Talk to a specialist
Get matched with an ADU lender.
We work with LA HELOC and construction-loan partners who know the ADU game. One 15-minute call and we'll point you to the right product for your equity position and timeline.
Book my call →Questions
HELOC questions we hear often.
Still have a question? Ask us during your free consultation.
How accurate is this HELOC calculator?
It uses standard amortization math with current 2026 HELOC rate ranges by credit tier. Your actual rate depends on full underwriting (income, DTI, lender, lock timing). Treat the output as ±0.5–1.0% APR and within ~$50/mo of a real quote on the same scope.
Why use a HELOC to fund an ADU instead of a construction loan?
HELOCs draw against the equity you already have, close fast (often 5–10 days with Figure-style digital lenders), and let you pull funds in stages as construction milestones hit. Construction loans require detailed scope upfront, longer underwriting, and inspections at each draw. For most LA homeowners with 30–50% equity, a HELOC is the cheaper, faster path.
What CLTV will most lenders go up to?
Most HELOC lenders cap combined loan-to-value at 85% on a primary residence, 75% on a secondary, and 70% on an investment property. If your existing mortgage plus the requested HELOC pushes you past those limits, you'll either need a smaller HELOC, a cash-out refinance, or a construction loan instead.
Will my HELOC rate change during construction?
If it's a fixed-rate HELOC (the kind Figure and most ADU homeowners use), no — your rate is locked at draw. If it's a variable-rate HELOC tied to Prime, your rate moves with the Federal Reserve. We recommend fixed-rate HELOCs for ADU builds so your monthly payment is predictable.
How much does the ADU itself add back to my home value?
On the LA market in 2025–2026, a permitted, attached-utility ADU adds roughly 60–80% of its build cost to appraised value, with detached units typically appraising higher than internal/garage conversions. So a $250K ADU often returns $150K–$200K in equity — meaning your post-build CLTV is usually better than your during-construction CLTV.
What happens after I see my estimate?
Book a free consultation and we'll walk you through HELOC vs construction loan vs refi for your specific equity position, then connect you to a lender who funds ADU builds in LA. No pressure, no obligation.
Important disclosures
Read before relying on this estimate
Educational tool, not a loan offer. This calculator is provided for informational and educational purposes only. The numbers it produces are illustrative estimates and do not constitute a loan offer, pre-approval, commitment to lend, rate lock, or quote of any kind. Nothing on this page should be relied on as the basis for any financial decision.
Not a lender, broker, or financial advisor. ADU Resource Center and ADU Design and Construction are not licensed mortgage lenders, mortgage brokers, NMLS-registered loan originators, financial advisors, tax advisors, or attorneys. We do not originate, fund, service, or broker loans. We may refer you to independent third-party lenders; we do not act as their agent and make no representation about their products, rates, or terms.
Rates, fees, and qualification are set by the lender. Default APRs shown are illustrative ranges based on publicly observable 2026 market conditions and are not specific to any lender, product, or borrower. Your actual APR, fees, draw period, repayment schedule, and qualification depend on full underwriting including (but not limited to) credit history, debt-to-income ratio, income documentation, property appraisal, occupancy, lien position, market conditions, and program-specific guidelines. Rates and program terms change without notice.
Calculation assumptions. Monthly payment is
computed using the standard fully-amortizing fixed-rate formula
M = P·r·(1+r)n/((1+r)n−1)
where P is the requested HELOC amount, r is the entered APR divided by 12, and n is the
term in months. The estimate ignores origination, appraisal, recording, title, annual,
inactivity, prepayment, and other fees, ignores variable-rate adjustments,
interest-only draw periods, balloon payments, taxes, insurance, HOA, and any other
costs that may apply to your real loan. Many HELOCs in market are variable-rate or
include an interest-only draw period — your real payments will differ.
No tax, legal, or financial advice. Statements about tax deductibility, equity treatment, ADU financing strategy, or anything similar are general educational comments and are not tax, legal, accounting, or financial advice. Consult a licensed CPA, attorney, or financial advisor about your specific situation before acting.
No warranty. The calculator is provided "as is" without warranty of any kind, express or implied, including without limitation warranties of accuracy, completeness, merchantability, fitness for a particular purpose, or non-infringement. To the fullest extent permitted by law, ADU Resource Center, ADU Design and Construction, their owners, employees, and affiliates disclaim all liability for any direct, indirect, incidental, consequential, or punitive damages arising from use of, or reliance on, this calculator or its output.
Privacy. The numbers you enter are processed in your browser only and are not transmitted to our servers unless you submit a contact form. Submissions made through forms on this page are subject to our privacy policy.
Equal Housing Opportunity. Any third-party lender we refer you to operates under their own license, NMLS ID, and Equal Housing Opportunity obligations. We do not discriminate on the basis of race, color, religion, national origin, sex, marital status, age, disability, familial status, or any other class protected by federal or state law.
Stop guessing
Turn this estimate into a real lender match.
Free, no obligation, intro to LA-based ADU lenders who can fund a HELOC at the rate you just modeled.
